Snapdeal’s FreeCharge unit keen on running RBI’s bill payment system

The central bank wants to set up the integrated bill payment system to bring transactions under a single umbrella, consolidating the plethora of gateways that now exist.Saloni Shukla | ET Bureau | December 23, 2015, 14:44 IST

Snapdeal, the ecommerce firm backed by Alibaba, would like to take a crack at maintaining the Reserve Bank of India’s proposed Bharat Bill Payments Systems (BBPS) through its FreeCharge unit.

The central bank wants to set up the integrated bill payment system to bring transactions under a single umbrella, consolidating the plethora of gateways that now exist.

“We will be interested (in BBPS),” said Kunal Shah, founder and CEO of FreeCharge, which Snapdeal acquired earlier this year. “People will come to one platform where they can pay all their bills. We actually love the fact that this initiative has been taken. You cannot make digital transactions happen in this country till you fix bill payments and mobile recharge.”

The RBI asked companies engaged in bill payments to apply to join the BBPS as Bharat Bill Payment System Operating Units (BBPOUs) on October 20. The network will offer interoperable bill payment services to customers online as well as through a network of agents on the ground.

The system, which will start with utility payments, will be designed to provide multiple payment modes and instant confirmation of money being received. Bank and non-bank entities currently engaged in bill payment can participate as BBPOUs or as agents of authorised BBPOUs.

Authorised collection agents will need to have a net worth of Rs100 crore and be registered domestically, the RBI has stipulated. The BBPS will be operated by the National Payment Corporation of India (NPCI), which will set standards for processes to be followed by operating units.

The move is expected to help track all payments and make it easier for customers who will no longer have to transact on different gateways. The scope of bills covered under the BBPS will be expanded to include other types of repetitive payments. The central bank has extended the last date for accepting applications to join the BBPS to December 18 from November 20.